Will the Central Bank’s digital coins be able to protect individual privacy?
Crypto industry leaders and legal experts discussed the privacy implications of exchanging all existing tokens – leaving coinbase’s board – repeated the claim – back in november 2020 – led by multicoin capital – a short guide to bitcoin forks – $20 billion a year – professional employment organization – whole new governance structure – before the end of 2020 during the ‚Money Re-Imagined‘ panel as part of the „Consensus: Distributed“ virtual event on May 11.
Lawrence Summers, former U.S. Treasury Secretary and former World Bank Chief Economist, argued that the current fiduciary monetary system presents privacy issues, saying that a CBDC should seek to facilitate greater oversight capabilities.
Former Bank of China president says digital yuan can replace cash
The current monetary system has „a lot of privacy“
Summers argued that supporting the multi-billion dollar anonymous movement should not be a goal of financial policy:
„Of all the important freedoms, the ability to own, transfer and do business with multi-million dollar sums seems to me to be one of the least important freedoms that governments should preserve. …] The case of the central bank’s digital currencies is to level the playing field among ever-smaller participants and to make it more difficult for anonymous forms of financing to flourish.
Legislators are responsible
Caitlin Long, an advocate of Wyoming’s regulatory adoption of blockchain and founder and chief executive officer of Avanti Bank & Trust, a future bank that will provide services to companies operating in crypto-currency, said privacy and anonymity issues often are discussed in the debate over digital currencies.
Long also argued that the financial sector is overburdened with regulations, requiring the compromise of individuals‘ private information, and said that many financial institutions are forced to comply with legislation with which they disagree.
Digital Dollar unlocks „differentiated“ privacy features
Christopher Giancarlo, director of the Digital Dollar Project and former chairman of the U.S. Commodity Futures Trading Commission (CFTC), said that a state-issued digital currency offers opportunities to encode privacy differentiated from individual rights balanced with government oversight needs.
„Achieving the balance of privacy“ should be a „design imperative“ for any digitized trust currency, Giancarlo argued.
Giancarlo argued that the goal of a digital dollar should be to create a currency that is the public’s preferred unit of money by choice, emphasizing that the design of any digital dollar initiative must be informed through intense public debate.